Federal benefits shape careers as Social Security cuts end in 2025
A recent survey has highlighted the major role that benefits play in attracting and retaining federal employees. Over 20,600 workers shared their views in the 2023 Federal Employee Benefits Survey, revealing how health, retirement, and family support policies shape career choices.
Meanwhile, a significant policy change in early 2025 has ended long-standing reductions to Social Security payments for many retirees, following the repeal of two controversial provisions.
The 2023 survey found that health and retirement benefits remain a top priority for federal workers. More than two-thirds of respondents said the Federal Employees Health Benefits (FEHB) program, the Thrift Savings Plan (TSP), and the retirement annuity were key factors in accepting their jobs. Over 90% rated these benefits as important or extremely important to their decision-making.
Paid parental leave also proved critical, particularly for younger employees. Among millennials and Gen Z workers, 68% stated that this benefit heavily influenced their choice to join the federal workforce. Overall, 76% of all federal employees said such benefits helped convince them to stay in government roles.
The survey also uncovered gaps in awareness. Nearly 80% of respondents did not know that FEHB plans cover prescription medications for obesity treatment. Additionally, 63% believed private companies should offer discounted fertility benefits if their FEHB coverage fell short.
In a separate development, President Joe Biden signed the Social Security Fairness Act into law in January 2025. This repealed the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), both introduced in 1983. These rules had reduced Social Security payments for federal and public sector retirees with non-covered pensions, often cutting benefits by hundreds of dollars each month. The repeal is retroactive to January 2024, meaning affected retirees will now receive full benefits plus lump-sum back payments.
The Federal Long Term Care Insurance Program, which helps cover care costs for those needing daily assistance, temporarily suspended new applications in late 2022. The program remains closed to new enrollees while under review.
The survey results confirm that federal benefits—from health coverage to retirement security—remain central to recruitment and retention. With the repeal of WEP and GPO, thousands of retirees will now receive higher Social Security payments, including back payments for past reductions.
Meanwhile, the suspension of the long-term care insurance program leaves some workers without access to a key support system as officials assess its future.
